Bitcoin Inflows Surge, Hinting at Potential Selloff
Bitcoin (BTC) has experienced increased inflows into centralized exchanges since December 1st, indicating a potential sell-off. Data from IntoTheBlock shows a surge in BTC exchange net flows, from a net outflow of $69 million to a net inflow of $326 million. On December 3rd, BTC recorded a net inflow of $230 million.
In total, over $562 million in Bitcoin has entered CEX platforms, according to ITB data. The asset's large holder-to-exchange net flow ratio also rose to 0.86% on Tuesday, suggesting that Bitcoin whales have been more active than retail holders.
Large Bitcoin transactions (worth at least $100,000) increased from 17,960 to 25,830 during this time period. The large transaction volume surged from $38.7 billion to $87.3 billion in BTC on Monday, December 2nd. ITB reported that Bitcoin recorded a total of $169.6 billion in whale transactions over the last seven days.
On-chain data reveals that an 11-year-old whale address with 2,700 BTC (worth over $257 million) transferred the Bitcoin to another wallet for the first time since December 2013, hinting at a potential selloff due to the 157-fold return. The whale accumulated the Bitcoins when the price was around $625 for a total of $1.68 million.
Currently, Bitcoin hovers at $96,500 after gaining 1% over the past 24 hours. Its market cap has again surpassed $1.9 trillion.
The increased exchange inflows may trigger uncertainty and doubt among retail investors. However, a surge in whale accumulation could shift the market sentiment and create buying pressure.
The potential U.S. Federal Reserve rate cut could serve as the next major bullish catalyst for Bitcoin and altcoins. The FOMC meeting is scheduled for December 17th and 18th.